BABA Call Trade Started

KDK Options has started a Jan $110 call trade. The cost was $0.18 before fees and commissions. The goal of the trade is $0.75. Some of the reasons for the trade are below.

- Holiday Shopping Season

- There was an unnecessary sector rotation out of Net stocks after the election making this trade possible

- Positive GDP numbers out of China

** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **

XLF Trade Closed For Profit

KDK Options has closed out its Jan XLF $20.00 trade for a profit. The call was sold for $0.81 before commissions and fees. There was a profit of $0.33 or 68 % before commissions and fees. Reasons for the trade are below:

- Presidential election
- Rapid Rise in trade
- Capital need for a different trade

 ** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **

New Call Purchase for XLF

KDK Options has purchased a XLF January $20.00 call option. The cost of the trade was $0.45 before commissions and fees. The expectation is for the trade to get to $1.00. Some reasons for the trade are below:

- Banks are starting to move in a trend upwards
- XLF provides some protection in the form of diversification (avoiding a sharp Wells Fargo drop)
- Trading comps were up
- M&A looks to be heating up


** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **

Square Oct Call Option Purchased

Hello

This week, an October $12.00 call option was purchased. The price paid was $0.40 before commissions and fees. The expectation is for the option to reach $1.00 before expiration. Some reasons for the purchase include

- trend is positive
- 50 dma crossing over 200 dma
- cup part of "cup and handle" formation being made
- Merger discussions heating up for Twitter
- gap to 13 needing to be filled


** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **

TLT Put trade started

KDK Options has entered into a TLT $132.50 September 9th Put trade. The cost before commissions and fees was $0.40. The goal for the trade is $2.50. A stop loss level has been created. Some of the reasons for the trade are below.

- Technical top reached

- Continued uptrend in the stock market

- US employment picture picking up

 ** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **

Ford Trade Stopped Out

The call trade has been stopped out. Those earnings were terrible. That was  a bummer. Back to the grind ;).


** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **

New Call Trade in Ford

KDK Options purchased a September $13.75 call option. The price before commissions and fees was $0.48. The expectation is that the trade will end at $1.25. There has been a stop loss price figured out. Reasons for the trade are below:

- Ford releases earnings tomorrow. With a good report, the $14.00 resistance should be breached and $15.00 should be quickly reached.

- GM released good earnings and saw a 5% bump in their stock price. A similar move in Ford would take the stock up to $14.60 immediately, putting the option in the money by $0.90.
 
- The 15 day has moved above the 200 day for the first time in over a year



Our stock arm, KDK Fund (link here), owns shares of Ford.


** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **

BAC trade over.....50% Return

The current Bank of America September $14.00 call trade has ended. The call hit the stop loss price of $0.62. New trade opportunities are being analyzed. The return result of the trade after fees and commissions was 50%.

A portion of the profits will be donated to charity.


 ** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **

BAC Call Trade now Profitable

Because of the earnings announcement, Bank of America stock has moved up over 4% and the current open call trade (link here) is now at a point where the stop loss price has moved into profit territory. The next trade will likely occur within 1-2 weeks of this trade ending (Expiration is Sept 19th).

KDK Options is grateful and looking forward to committing a portion of its profits from the trade to charity.

** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **

Bank of America W Formation on Daily, Weekly, and Monthly

When looking at the different charts for Bank of America, there is a growing likelihood that a W formation is being created. If you look at the daily, weekly, and monthly charts (below), you can start to see the rise from the second bottom on each chart.

The daily is actually in its extension phase of its W formation. So there likely will be some resistance at the $14.00 level. With earnings coming next week, there is a chance it could reach beyond $14.00. The 1.68 Fibonacci extension from the middle of the W to the second bottom of the W would put the W finishing at $14.01.

If the weekly is to follow, the likely 1.68 Fibonacci price extension for it would be $17.04 and the 2.00 Fibonacci extension would be $18.00, which is where a massive resistance is located. The monthly chart says the same in regards to price points.
 
As always, this is just one opinion. Please do your own due diligence before trading or investing. Thanks to Optionsxpress for the charts.

Daily




Weekly



Monthly










** This blog is used for informational purposes only. It should not be used as a recommendation to buy or sell any security. Do your own due diligence before trading or investing. **